New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

How is the amount of business income calculated for Form 4562, line 11 used to determine the amount of Section 179 deduction allowed for the current year?

Answer

UltraTax CS calculates trade or business income for a C Corporation by totaling the following amounts.

• Taxable income before net operating loss and special deductions
• Section 179 expense deduction allowed in current year

UltraTax CS calculates trade or business income for an S Corporation by totaling the following amounts.

• Ordinary business income (loss)
• Net rental real estate income (loss), if the option to include net income or loss in the calculation for Section 179 business income is marked in Screen Rent or 4835.
• Other net rental income (loss)
• Royalty income (loss)
• Net section 1231 gain (loss)
• Shareholder wages

If the amount on Form 4562, line 11 is less than the amount on line 5, UltraTax CS prints a not required statement for S Corporation clients detailing the amounts that are used to calculate the business income limitation for Section 179.

You can force the amount of business income for Section 179 purposes in the Section 179: Business income limitation (Force) field in Screen OthAsset in the General folder.

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